What To Do When Your Upside Down

Many Maplewood home sellers are challenged with the unfortunate problem of owing more on their home than what they can sell it for. The fact is that in order to sell your property in the Minnesota real estatemarket you need to be able to pay off your entire mortgage loan in order to sell it. Unless you want to arrange a "short sale" with your mortgage lender, this means you will bring money to the closing in order to pay off the remaining balance that you owe. Many home sellers who need to move now are considering the possibility of making their current home available to rent with the hope of buying a new house.

The good news today is that with the tougher mortgage market, rents have increased significantly. It is not uncommon to find renters competing with each other to rent out your home as their is a shortage of quality home rentals available today. Many people are finding that they can more than cover the expenses for retaining the home with these increased rents.

The goal, of course, is to rent the current home out long enough to allow the real estate market to recover in terms of values. Hopefully within a few years the value of your rental home will rise sufficiently to sell it for enough to pay off the mortgage. The key to accomplishing this is to see if you will qualify for a new mortgage if you have rented out your current home.

Will Rental Income Help Me Qualify?

Lenders have specific guidelines to follow for those Maplewood home sellers who have made the decision to rent out their house to buy another. Depending on the equity that you have in your home, a mortgage lender may or may not consider the rental income you receive when they qualify you for the new mortgage. The only way to know this is to call a lender to get preapproved.

Get preapproved right away

Once we meet to discuss your home's current market value it is critical that you go through the process of getting prequalified for a home loan. Your mortgage lender can help you decide which of the options are best whether renting or selling your current house. The process of getting preapproved is generally free and contains no loan obligation. A good mortgage banker will be able to analyze all of the options available to you such as MN FHA loans, VA, conventional, or other types of loans.

Maplewood, MN Community Info

Just a quick 15-minute commute from St. Paul, Maplewood, MN is a great community for first time home buyers as well as move-up buyers. The City of Maplewood, MN is certainly proud to be home to the world headquarter's of 3M corp. Being so close to the city, Maplewood residents find them their neighborhoods amidst a unique blend of lakes, ponds and wooded areas. The city offers an extensive list of things to do. If you are currently looking for a great place to relocate conveniently near St. Paul please call me to help you with your search for Maplewood.

If you want to talk about renting out your current home, please email me for more information.

Casey Anderson
Sales Executive, Licensed Realtor in Minnesota
IBR Realty
caseyanderson@ibrrealty.com
Cell 651-245-1820
Woodbury, MN 55125
With a focus on Woodbury real estate and surrounding communities